India expects to conclude a trade agreement with the United States before year‑end, as most outstanding issues have been resolved, Commerce Secretary Rajesh Agarwal said on Friday.
Speaking at FICCI’s Annual General Meeting, he stated that discussions have progressed enough for both sides to be ‘very optimistic and very hopeful’ about finalizing a deal within the current calendar year.
India and the U.S. had initially aimed to finalize the first phase of the bilateral trade agreement by autumn 2025; however, recent shifts in Washington’s trade policy, including the new reciprocal tariffs, have altered the timeline.
Starting in late August, the U.S. imposed tariffs of up to 50% on Indian imports, even as negotiations continued. The Trump administration has also pushed India to cut oil purchases from Russia and lower tariffs, including on sensitive sectors such as agriculture.
Agarwal cautioned that trade negotiations often face last-minute obstacles. He explained that in any negotiation, final deadlines are never guaranteed; if a single issue remains unresolved, the deal may miss the target, underscoring the unpredictable nature of long-term agreements.
He also noted that the U.S. decision to impose tariffs on all trading partners has shifted the dynamics of the discussions.
Consequently, New Delhi and Washington are now conducting two parallel negotiations: the long-term Bilateral Trade Agreement and a more immediate framework deal to address the high tariffs on Indian goods.
“What needs to come first is the framework trade deal, which is able to address the reciprocal tariffs,” Agarwal affirmed.
The developments follow a recent meeting in Washington between India’s Ambassador to the United States, Vinay Mohan Kwatra, and the U.S. Under Secretary of State Jacob S. Helberg aimed at advancing discussions on a mutually beneficial trade deal and cooperation in emerging technologies.
Meanwhile, India’s trade deficit with the U.S. reached a record $41.68 billion in October, driven by higher gold imports and a drop in exports to the U.S.
Commerce Ministry data shows that India’s merchandise exports to the U.S. fell 11.93% to $5.46 billion in September, while imports from the U.S. increased 11.78% to $3.98 billion.
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